How to Interpret a Copyright Notice

I just posted a link to a story on the indychannel.com and while doing so, read their copyright notice at the bottom of their page and found something interesting and at the same time confusing.

Their copyright message reads..."Copyright 2008 by
TheIndyChannel.com
All rights reserved. This material may not be published, broadcast, rewritten or redistributed."

Now I understand their reason for copyright, and although I may think that a Creative Commons license would do them more good, my posting of this story can only bring them more traffic, and thus more advertising revenue, so in fact they should be making it easier for me to share their story, I mean they even have the little icons on the story to post it to Digg, Delicious, Facebook and others, but why then would they post such a limiting copyright message. And beyond that what does "rewritten" mean.

By paraphrasing the story, and linking to it, have I violated copyright? Have I rewritten the story? And do the copyright notices on a page even matter.? They are reserving all rights to the material, but can they prevent others from reporting the story too, or even from attributing the story to them? I am not sure, and that is why I am asking the question. Perhaps this is why changes to the Canadian Copyright Legistation are so important to everyone in Canada. To try and make questions like these easier to answer and to allow every day people to be much more sure of what we can and cannot re-use or comment upon.